Covalon Announces Closing of Non-Brokered Private Placement

MISSISSAUGA, ON, Oct. 26, 2012 /CNW/ - Covalon Technologies Ltd. (the
"Company" or "Covalon") (TSXV: COV), an advanced medical technologies
company, today announced the closing of a non-brokered private
placement comprised of 9.55 million units at a price of $0.052 per unit
for gross proceeds of $496,600. Each unit is comprised of one common
share and one common share purchase warrant. Each common share purchase
warrant entitles the holder to acquire an additional common share at a
price of $0.10 per share for a period of five years from the closing
date. All securities issued pursuant to the Offering will be subject to
a hold period expiring February 27, 2013. Directors and officers of
Covalon participated in the non-brokered private placement for an
aggregate of 1.8 million units. Proceeds of the private placement will
be used by Covalon to develop and commercialize new wound care
products, expand international distribution channels and for general
working capital.

No commission or finder's fee will be paid in connection with the
private placement. As Insiders will participate in the private
placement, any such subscriptions will be considered to be related
party transactions within the meaning of TSXV Policy 5.9 and
Multilateral Instrument 61-101 ("MI 61-101"). The Company intends to
rely on the exemptions from the valuation and minority shareholder
approval requirements of MI 61-101 contained in sections 5.5(b) and
5.7(a) of MI 61-101 in respect of such Insider participation.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements which reflect the
Company's current expectations regarding future events. The
forward-looking statements are often, but not always, identified by the
use of words such as "seek", "anticipate", "plan, "estimate", "expect",
"intend" and statements that an event or result "may", "will",
"should", "could" or "might" occur or be achieved and other similar
expressions. These forward-looking statements involve risk and
uncertainties, including the difficulty in predicting product
approvals, acceptance of and demands for new products, the impact of
the products and pricing strategies of competitors, delays in
developing and launching new products, the regulatory environment,
fluctuations in operating results and other risks, any of which could
cause results, performance, or achievements to differ materially from
the results discussed or implied in the forward-looking statements.
Many risks are inherent in the industry; others are more specific to
the Company. Investors should consult the Company's ongoing quarterly
filings for additional information on risks and uncertainties relating
to these forward-looking statements. Investors should not place undue
reliance on any forward-looking statements. The Company assumes no
obligation to update or alter any forward-looking statements whether as
a result of new information, further events or otherwise.